Lebanon Manual Labor Costs Additional Information
Working hours
All employees are subject to the guidelines set by the labor law. An employer may demand a
maximum of 48 regular hours per week from his employees. Under special circumstances, employers
are permitted to add extra hours to an employee’s regular shift, but this requires a permit from the
Ministry of Labor
Annual leave
Full time employees are entitled to 15 days paid vacation at the end of their first year of employment.
The employee can accumulate two annual leave periods.
Holidays
There are two compulsory public holidays on which all employers must give their employees holiday
with pay: Labor Day (May 1) and Independence Day (November 22). In addition, there are 13 other
government-recognized holidays during which all public offices and most businesses are closed.
Sick Leave
After the employee has been with his employer for more than three months, he is entitled to a half
month paid sick leave. If an employee’s sick leave exceeds the entitled annual amount, the employer
has the right to deduct the extra days from the annual leave entitlement.
Bereavement leave
In addition to annual and sick leave, an employer is required to provide his employees with two days
in cases of bereavement, to be used upon death of close family members, including grandparents.
Termination
The employer and the employee can mutually agree to break a written work contract at any time, in
which case there is no payment for damages or entitlements. However, in situations where one party
breaks the contract, the injured party is entitled to seek compensation.
Misconduct
In situations where either party breaks the work contract for reasons of misconduct, the party seeking
compensation must file a lawsuit no later than one month after the violation. Firing an employee is
considered misconduct or abuse of power if the action is based on an unjust or personal reason.
Financial Hardship
An employer is allowed to end commercial contracts with his employees if he has a significant reason,
such as financial difficulties. However, the Ministry of Labor must be informed of the move at least
one month prior to the employees being released.
The National Social Security Fund (NSSF)
The National Social security Fund (NSSF) was established by a 1963 decree. It provides employees
with national insurance coverage for sickness and maternity care. It also covers family allowance,
end-of-service pensions, and work-related accidents and diseases. Any employee or laborer from any
sector is eligible to enroll in the program.
To work in Lebanon, foreign employers need valid work and residence permits. In principle, foreigners
working in Lebanon are also entitled to join the NSSF, provided their home country offers the
equivalent or better program to Lebanese residents who are working there. In practice, it happens
rarely.
End of service
The employee can ask for end-of-service benefits at any time even though the official retirement age
is 64. At the age of 60, an employee can ask for early retirement and end-of-service compensation
provided he/she has completed 20 years of service.
Family, Transportation and Education Allowance
Employees are also entitled to family, transportation, and educational allowances. The benefits are
attached to the husbands’ rather than to the wives’ salaries.
A married employee registered with the NSSF receives a 20 percent spouse allowance and an
additional 11 percent for every child (maximum five). The allowance is calculated as a percentage of
the minimum wage, which is currently at LL300,000 (USD200).
NSSF health benefits
Once an employee is registered, the NSSF covers the employee and his dependents in the following
areas: maternity, sickness, and work-related accidents.
The employee is liable for 10 percent of all hospitalization costs and 20 percent of medication and
examination expenses.
Compliance and the NSSF debate
The law requires all companies to contribute to the NSSF fund. Small companies with fewer than 10
employees have to submit their report every three months.
Larger enterprises must submit their reports monthly.
Fines for infringement of these rules range from LL100,000 to LL1.5 million for each offense,
depending on the circumstances of the case. Fines for subsequent offenses double. However, with a
team of only 75 inspectors to cover the entire country, the chances of getting caught are slim.
The percentage of the workforce covered by NSSF contributions is also low. Statistics from the NSSF
indicate that only 38,890 companies have registered with the organization, with 355,646 employees
enrolled for health and maternity coverage. There are an estimated 160,000 functional companies
and 1.3 million workers.
Unions and Syndicates
Unions
There are five categories of labor unions in Lebanon. The main one is the General Union, which
includes both professional and manual laborers and is the umbrella organization of 28 local and
professional unions.
Syndicates
All employees have the right to join a syndicate. However, they cannot use it for political purposes.
A license from the Ministry of Labor is required to establish a syndicate.
Salary Scales
Minimum Wage
The Ministry of Labor sets the minimum wage. Currently, it is LL300.000. This benchmark is applied in
both, the public and private sector.
National Salary Scales
The National Living Conditions Survey conducted by the Central Administration of Statistics noted that
in 1996-1997 the annual average national salary was LL10,512,000 (USD6,975). Since each family
has more than one contributing member (1.4 percent on average) the real income was LL15,241,000
(USD10,106) per year.
Work Permits for Foreigners
Work Permits for Professional Staff of Foreign Firms
Work permits for overseas nationals working for an international company based in Lebanon are easy
to get. When applying for work in a Lebanese institution, the labor law – as in many other countries –
appears to impose many restrictions, but in practice the Ministry of Labor is relatively lax.
Proprietor’s Work Permit
A proprietor who wants to get a work permit must provide details about the company’s business
activity and a copy of a bank statement showing an operating capital of at least LL100 million. A
foreign national must have at least one local partner holding the majority share.
Representatives of Overseas Firms
The managers, branch managers, or chief accountants of an overseas company registered in
Lebanon need the local company’s commercial registration, which is issued by the Ministry of Trade
and Economy. They also need a certified copy of the company by laws from company headquarters,
as well as a letter of appointment certified by the embassy in the country of origin and then by the
Lebanese Ministry of Interior.
Executives of locally-registered overseas firms
The country’s labor law, like many others around the world, stipulates that jobs should go, whenever
possible, to a Lebanese national.
To hire a foreigner, the employer must convince the ministry that there is no one locally available who
is equally qualified to perform the work.
Restricted Professions
There are certain professions and positions that foreigners are forbidden to work in but the rule is
loosely interpreted. This list includes, but is not limited to, areas such as banking, laboratories,
pharmacies, and jewelry. Likewise, there are several sectors in which the employer must be a
Lebanese national. They include, but are not limited to, banking, architecture, engineering,
shoemaking, furniture manufacturing, printing and accounting sectors. Notwithstanding, many banks
employ foreign staff as very senior levels.
Cancellation
The Ministry of Labor reserves the right to cancel any work permit at any time. Should the ministry
discover that any of the documentation used to obtain the permit was falsified or incorrect, the permit
will be immediately withdrawn.
Labor Work Permits
Foreign laborers are predominantly employed in agriculture, construction or sundry physical jobs such
as porters. The Ministry of Labor asks the employing company or farm to fill out an application form
accompanied by the original work contract (not a copy).